Marketbites: Ford Ramps Up EV Production
Portfolio Manager Commentary:
Stocks finished lower Monday, pausing a January rally as investors prepare for the busiest week of earnings season and a possible interest rate hike from the Fed on Wednesday. Information technology and communication services were among the biggest laggards in the S&P 500, each down more than 1.5%. Mega-cap tech stocks such as Meta Platforms and Alphabet were more than 2% lower, each. Semiconductor stock Advanced Micro Devices fell more than 3%.
Elsewhere, Ford shares declined more than 2% after the automaker said it’s cutting prices and ramping up production on its electric Mustang Mach-E crossover, following a similar announcement from Tesla.
About 20% of the S&P 500 will report earnings this week, including McDonald’s and General Motors on Tuesday followed by tech giants Apple, Meta Platforms, Amazon, and Alphabet later in the week.
Chart of the Day:
There are troubling signs that some households are coming under pressure. Borrowers have put more purchases on credit cards, but they chipped away at balances at a slower rate. Delinquency rates on credit cards and consumer loans in the fourth quarter approached or hit levels they were at prior to the pandemic, when stimulus and lower spending on services allowed consumers to bulk up their savings and pay down debt.